HR: Health plan dependent verification is due May 3, 2010

Just a reminder: All individuals claiming a dependent for insurance purposes are required to provide supporting documentation of the relationship to the covered dependent. The deadline for sending in verification is May 3, 2010.

SMU has hired an outside firm, HR Advance, to conduct its dependent eligibility audit. Faculty and staff members should consult the instructions they received from HR Advance for their individual requirements.

Please send copies, not originals, of the requested documents (examples include marriage license, birth certificate and tax return documentation). HR Advance will destroy the copies after the documentation is verified.

Section 125 of the Internal Revenue Code enables SMU to deduct premiums for your health coverage on a pre-tax basis. Withholding your deductions pre-tax reduces your taxable income at the end of the year.

Section 125 Plans require that certain rules and restrictions regarding eligible dependents be observed. Covering dependents that are not eligible is a violation of the Section 125 IRS Code as well as University policy; it also drives up costs across all SMU health plans.

Additional details on plan eligibility rules including required documentation are provided in the 2010 Benefits Guide, which became available during open enrollment last October.

SMU’s Department of Human Resources is working with outside consultants to determine the impact of the new federal health care reform legislation on the University’s insurance plans, says Sheri Starkey, director of total compensation. HR will provide more information as it becomes available.